Sample+Questions+for+Midterm

Sample+Questions+for+Midterm - i. What would be the total...

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Econ 13/IS 13 Sample Questions for Midterm 1. How does an import quota differ from an equivalent tariff? 2. What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain. 3. Using the graph, assume that the government imposes a $1 tariff on hammers. Answer the following questions given this information. a. What is the domestic price and quantity demanded of hammers after the tariff is imposed? b. What is the quantity of hammers imported before the tariff? c. What is the quantity of hammers imported after the tariff? d. What would be the amount of consumer surplus before the tariff? e. What would be the amount of consumer surplus after the tariff? f. What would be the amount of producer surplus before the tariff? g. What would be the amount of producer surplus after the tariff? h. What would be the amount of government revenue because of the tariff?
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Unformatted text preview: i. What would be the total amount of deadweight loss due to the tariff? 4. Explain how and why appreciation and depreciation of currencies can change trade patterns between countries. 1 5. If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price, a. the country will be an exporter of the good. b. the country will be an importer of the good. c. the country will be neither an exporter nor an importer of the good. d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither. 6. If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus. True or False? 2...
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This note was uploaded on 11/23/2010 for the course ECONOMICS Econ 13 taught by Professor Georgesarraf during the Spring '10 term at UC Irvine.

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Sample+Questions+for+Midterm - i. What would be the total...

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